The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-21
And Declare that Certain Lines of Business
Will Be Compelle'i to Remove to New York
City Unless t'se Pressure Is Lifted.
Several Nort western Railways Apply
for Modification of the Law.
Relations Of the Press and the Western Lines
-Sensa'sio nal Rumor in Relation to the
Union hacific-General Railway News.



Their Grade Will Be Ruined Unless the In.
terstate Commission Iuterferes.
WASHINGTON. April 2o--The representatives
u 'rarious business interests centerine in Boston
ere present in the rooms OF the Interstate Com
mission. at 10 o'clock this morning. and the
hearing of their arguments began at once.
Judge Zoule, attorney of the Boston & Albany
Railroad Company, said the route taken by
shipments to Boston was not the same as that to
New York. but was between 60 and lis miles
longer. OF course, tie rates to New York were
fixed by the shortest line. There had grown MP
a large export trade in Boston, made possible by
an arrangement with the roads which brought
traffic at the Same rates charged by the New
York roads to that CITY, This trade rendered it
possible to maintain a line of steamers to Eng
land. which line could not be maintained with
out this traffic Hence, this question became
one of greater moment to Boston interests than
would appear merely from the amount of the
traffic itself. He submitted statements showing
ths extent of the traffic referred to-
Arthur Mills general traffic manager of the
Boston g. Albany road. was sworn, and set forth
In greater detail the history of the growth of
the traffic, which is said to be jeopardized, and
the extent Of the interests involved. The local
rate from the West to Boston was about cents
greater on grain and certain like classes of prod
uce than that upon the same merchandise in
tended for export. If the local rates were
charged on the export traffic it would kill it. A
certain portion Of this traffic came on through
bills of ladine from the West to foreign ports.
About an equal amount was brought to Boston
Ill ~
could see a favorable market abroad. 1t was
only upon this last class that relief was asked
The Boston dealer was not able to avail himself
of the through bills; they were given by the
Western roads to Western men. In reply to
Commissioners Shoemaker and Bragg, Mr.
Mills stated that the rates upon oil from tine
Pennsylvania oil regions were higher than
before the law went into effect
There was discrimination, but there was none
from the oil stations. His company did not
know the Standard Oil Company in any of these
transactions; it received the oil from the New
York Central but. with all due respect to the
commission. was he compelled to answer ques-
tions relating to these mattersl He was willing
to state anything he knew respecting matters
subsequent to the date when the law took effect;
but were previous matters to form part of this
inquiry9
The commission thought the inquiries were
legitimate The witness said in substance that
there were rebates upon oil and upon other COM
aodities His road, ne repeated, did not know
the Standard Oil Company. Who aid they
know2 They only knew the Boston Refneries
lines. to which organization it delivered the oil.
II had made rebates on Western produce, the
benefciaries Of which were the Boston export
ers. The Western through shippers had no
claim for a rebate, since they got an equivalent
advantage in their through bills of iading.
George A. Torrey, attorney for the Fitchburg
road addressed the commission. He exhibited
maps of his line and photograph Of the i'm
mense wharf and elevator property of the COM
pany, which would become useless il the former
privileges were not restored. There were three
ways Of shipping grain-one upon through bills
of lading from Chicago to Liverpool, the second
upon bills from Chicago to Boston INTENDED for
shipment abroad), at fat New York rates, the
third from Chicago to Boston at local rates.
This last was put into the company's elevator
and should the consignee come, say week
later, and declare his purpose to export the
grain. he would get rebate. In this the
was actually shipped. Mr. Torrey called Mr..
Whitmore, general traffic manager of the Fitch
burg road, to state to the commi ssion, under
oath, the difficulties OF doing the export bust,
ness under other than the old methods. One Of
these found in the fact that ocean freights
varied from week to week, yet the through rates
could not be changed by the railroads without
giving notice In advance The Fitchburg COM
pany was entirely dependent upon Boston traffic
for its prosperity. and for this reason was per-
haps, more deeply interested than the other
companies represented here.
Mr.. John Portius. general traffic manager of
the Grand Trunk. representing on this occasion
the Central Vermont and the Boston & Lowell
roads. addressed the commission These lines
had about thousand tons of freight a day for
export, besides a large traffic of various kinds
from Canada and the West for the coastwse
trade. 1T they were refused the privilege Of
making rebate. New York would handle both
the export and the coasting trade
Mr. William S. Lincoln, agent of line Of
transatlantic steamers, then addressed the COM
mission under oath. Tho commission, he said,
could hardly appreciate the gravity Of the aues-
ton presented; the whole business Of Boston
was involved in this matter, both local ana ex.
port This export business had grown up
within the last fifteen years. It was fact not
port Of the country in the amount of IT'S ex.
ports and imports. This trade had all been
built up the basis of equality with New
York on rates This did not mean equality in
from the West, and this gave her an advantage.
1t meant merely an equality in rail
road rates. New York's advantage, in
spite OF this equality, was such that the average
rate OF ocean freights during the last season had
been from penny to a penny and a half in hel
favor This question was of such importance
that he had cabled his people in Liverpool the
day before leaving Boston, to delay the sailing
of steamship which was about to sail until i,
should be settled and he knew tina. other lines
had done the same. Despite the equality OF
railroad rates in the past, such were the other
advantages of New York that one-half of his
companys steamers during the year had been
diverted to New York. The through rate from
Chicago to Liverpool to-day is less than tho
local rate from Chicago to Boston; so that il .
man were to bring grain to Boston and reship i
to Liverpool, the ship would have not only Il
take the grain for nothing, but pay for tn,
privilege of carrying 1t.
G. H. Allen. representing the Allan line wa.
sworn. He said the law had greatly interferet
with the business of the steamers. The Pavonia
which sailed few days ago, was short abou
1000 tons of her cargo. Another steamer
which sailed last night, was short about sever
hundred tons
Mr. Torrey, OF the Fitchhurg road. in answe
to question by the chairman as to what powe
conferred by law upon the commission it was de
sired should be exercised, said it was his owl
opinion that the law did not forbid the continu
ance OF the drawback. hut other gentlemen dis
agreed with him. Suppose the commission wer
o, the opinion that shipments destined for Lis
erpool were not handled under Substantially
the same circumstances and conditions" as thos
coming from the West to Fitchburg or locally I
EAn ~. Ill -.